Having a baby is one of the most exciting times in a person’s life, but it can also be quite expensive. The costs associated with pregnancy, childbirth, and raising a newborn can quickly add up. However, these costs can vary significantly depending on which state you live in.
What factors impact the cost of having a baby?
There are several key factors that influence how much it costs to have a baby in each state:
- Health insurance coverage and maternity care benefits
- Hospital and provider charges for prenatal care, childbirth, and postpartum care
- Access to midwifery care and out-of-hospital birth options
- Cost of living expenses like housing, childcare, and taxes
States with more comprehensive health insurance mandates, lower provider charges, and access to lower-cost birth options like midwives and birth centers tend to be more affordable places to have a baby. States with higher costs of living and fewer insurance protections tend to have higher out-of-pocket costs for expectant families.
What are the typical costs associated with having a baby?
According to recent estimates, here are some of the average costs associated with pregnancy and newborn care:
- Prenatal care: $2,000
- Hospital charges for vaginal birth: $10,000-$30,000
- Hospital charges for c-section: $20,000-$50,000
- Postpartum care: $400
- Newborn care: $4,000-$10,000
Of course, with or without insurance, actual charges can be much higher or lower depending on your provider, complications, length of hospital stay, and geographic location.
What state is the most affordable overall for having a baby?
Based on an analysis of average birth costs, insurance rates, availability of providers, and cost of living factors, experts widely agree that New Mexico is the most affordable state overall for having a baby.
Here’s why New Mexico comes out on top:
- Average vaginal birth charges around $7,500, vs. $10,000-$30,000 nationwide
- Highest percentage of births attended by midwives, who charge less than physicians
- Lowest uninsured rate for women of childbearing age at around 11%
- Higher than average Medicaid eligibility limit for pregnant women and infants
- Low cost of living index of 86.8, vs. 100 national average
New Mexico has worked hard to promote access to affordable pregnancy and birth options, which brings down costs across the board. Midwives attend nearly one third of births in the state, and Medicaid is available to most low-income women throughout pregnancy and 60 days postpartum.
Other affordable options in the West
Other relatively affordable options in the Western U.S. include:
- Nevada – Average $8,500 vaginal birth, high midwifery usage
- Arizona – Average $7,800 vaginal birth, lower c-section rates
- Alaska – Higher Medicaid eligibility and lower living costs
What are the most expensive states for births?
On the opposite end of the spectrum, some of the most expensive states for childbirth costs include:
- Alabama – Average $11,200 vaginal birth, few midwife options
- Texas – Very high c-section rates and uncomplicated vaginal birth charges around $12,000
- Georgia – Average $10,600 vaginal birth, low midwifery usage
- Florida – Poor Medicaid coverage and high 18% uninsured rate among women of childbearing age
Southern states tend to have higher rates of maternal health complications, surgical births, provider shortages, uninsured women, and eligibility limits on Medicaid coverage for pregnant women.
Other expensive states in the East and Midwest
Some other costly states for giving birth include:
- Massachusetts – Very high average charges over $15,000 per birth
- New York -although average $9,000 vaginal birth, very high living costs
- Illinois – Average $11,800 vaginal birth, expensive metro areas
- Wisconsin – Tight Medicaid eligibility limits on income and postpartum coverage
In general, access to midwifery care, lower intervention rates, better insurance coverage, and affordable living expenses make a big impact on the real-world cost of having a baby, regardless of health care charges.
How can you estimate your out-of-pocket expenses?
To get a better idea of the true out-of-pocket costs you can expect, experts recommend:
- Contact your health insurance plan to find out your maternity benefits and cost-sharing
- Talk to providers in your area to learn their specific charges for pregnancy and birth services
- Investigate options like midwives, birth centers and even home birth to compare costs
- Factor in expenses like prenatal vitamins, newborn supplies, and time off work
Online cost estimator tools can also help you input your location, insurance, clinic, and birth preferences to calculate a more personalized estimate. This can help you comparison shop and budget for added baby expenses.
What financial resources help reduce the cost of having a baby?
If you’re worried about affording pregnancy, childbirth, and a new baby, some financial resources that can help offset costs include:
- Medicaid – Public insurance for low-income women and children, with expanded eligibility during pregnancy in most states.
- CHIP – Provides coverage for infants, children up to age 19, and pregnant women who don’t qualify for Medicaid but can’t afford private insurance.
- Tax credits – Refundable credits like the Earned Income Tax Credit support low-income families.
- Grants – Nonprofits like the Angel Baby Fund give grants for pregnancy-related medical costs and infant essentials.
- Payment plans – Many hospitals and providers offer no-interest or low-interest financing for maternity care bills.
- Crowdsourcing – Sites like GoFundMe let you fundraise for pregnancy, birth, and baby costs.
In addition, many communities offer free or reduced prenatal classes, lactation support, baby supplies, parental education, and other services to help offset new and expectant parent costs.
How can policies expand affordable pregnancy care access?
Expanding access to affordable high-quality maternity care across all states will require policy changes like:
- Expanding Medicaid eligibility for low-income adults, including at least 12 months postpartum coverage.
- Ensuring adequate payments and participation standards for Medicaid and private insurance.
- Increasing access to licensed and accredited midwives as covered providers.
- Improving insurance coverage and affordability on the individual market.
- Holding hospitals and providers accountable for transparent pricing.
National initiatives focusing on equitable maternal and infant care access, reducing overuse of maternity interventions, expanding accountability in maternity care, and investing in the perinatal workforce can help rein in costs while improving outcomes.
The bottom line
While the economy, health policies, and insurance coverage impact what families ultimately pay out of pocket, the state where you live can significantly influence the costs of having a baby. Focusing on solutions to increase access to respectful, evidence-based maternity care and reduce ballooning charges ultimately benefits the entire community.